web analytics
August 2, 2015 / 17 Av, 5775
At a Glance
InDepth
Sponsored Post


Home » InDepth » Op-Eds »

Israel’s Credit Rating Reaffirmed

Straight from the Jerusalem Board Room: An optimistic report on Israel's economy from from Yoram Ettinger.
Israel great credit

Photo Credit: Yori Yanover

1.  Israel’s credit rating has been reaffirmed at A+ by “Standard and Poor,” at a time when S&P lowers the credit rating of an increasing number of Western countries.  According to S&P:

the Israeli economy continues to generate solid economic growth and enjoy a net external asset position, even though the current account has temporarily turned negative. The stable outlook reflects our view that there is sufficient political will to prevent a sizable increase in the government’s debt burden, and that major security risks will be contained. 

S&P noted that “there has been fiscal slippage on account of lower government revenues,” but added, “recent austerity measures and current growth levels should ensure that debt ratios modestly improve in the medium term.

Referring to the most important economic development in Israel in recent times, the discovery of large offshore gas reserves, S&P said, “We forecast that by the middle of the decade domestic natural gas production should contribute to improved external and fiscal balances” (Globes Business Daily, September 30, 2012).

2.  Israel’s GDP grew by 3.4% during the 2nd quarter of 2012, compared with 3.1% and 3.2% during the 1st quarter of 2012 and the 4th quarter of 2011 (Globes, Sept. 20) . While unemployment trends upward towards 7% – which is significantly lower than OECD countries – housing demand peaked in August, to a 13 year record (Globes, Sept. 28).

Israel’s export is impacted by the global meltdown in general and Europe’s intensified economic crisis in particular.  However, while export to Europe declined by 21% during July-August, 2012, compared with July-August, 2011, export to the U.S. surged by 16% during the same period and by 31% compared with May-June, 2012.  Total export ($7.7BN) decreased by 3.5% during July-August, 2012 (Israel Hayom, Oct. 3).

3.  According to the 2012 OECD report, Education at Glance, Israel is ranked 2nd in the number of adults (25-64 year old) with academic degrees, trailing Canada, but ahead of all other OECD countries (Israel Hayom, Sept. 12).

4.  eBay CEO John Donahoe at Israel’s Advanced Technology Conference in Jerusalem (Bloomberg, Sept. 11):  the Israel R&D centers of eBay and its subsidiary PayPal will continue to help drive the company’s innovation in commerce and payment in the foreseeable future. Those centers are based largely on Israeli start-ups acquired by eBay, including Shopping.Com, The Gifts Project and Fraud Sciences. Those centers, employing 340 people, work on everything from EBay’s global social activities to cataloging and data to search mechanisms as well as security and risk management.  Donahoe is looking forward to partnering with more Israeli entrepreneurs to help further spur the future of retail and commerce.

5.  Cisco Systems, the Silicon Valley-based Greylock Partners and the Englewood, CO-based Liberty Global participated in the $24MN 5th round of private placement by Israel’s Celeno (Globes, Sept. 28).

Kazakhstan’s Kenges Rakishev invested $20MN in Israel’s Mobli.  Additional investors in Mobli are Leonardo DiCaprio, Tobey McGuire and Serena Williams.

In August, Rakishev invested $5MN in Israel’s TriPlay (Globes, September 20). The Radnor, PA-based New Spring Capital, the Menlo Park, CA-based Menlo Ventures and the Palo Alto, CA-based Trident Capital participated in a $12MN 3rd round by Israel’s eXelate (Globes, Sept. 25). Switzerland’s ABB will invest $10MN in an Israeli solar project (Globes, Sept. 3). Motorola Solutions led a $4MN round by Israel’s AgentVi (Globes, Sept. 12).

Visit the Ettinger Report

About the Author: Ambassador (ret.) Yoram Ettinger is consultant to Israel’s Cabinet members and Israeli legislators, and lecturer in the U.S., Canada and Israel on Israel’s unique contributions to American interests, the foundations of U.S.-Israel relations, the Iranian threat, and Jewish-Arab issues.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Israel’s Credit Rating Reaffirmed”

  1. Tim Upham says:

    The problem is that the Israeli economy continues to grow, and it credit rating is increased. But this economic euphoria could very easily be threatened by the Palestinian economic collapse. Israel exports over U.S. $3 billon dollars worth of commodities to Areas A, B, and C, of the West Bank. If there was a Palestinian economic collapse, Israel would not be able to decouple from it. The Israeli-Palestinian economies are linked by an economic umbilical cord. The best thing to do, is to make the West Bank and Gaza into an independent Palestine, so it could apply for multi-lateral assistance from the World Bank and International Monetary Fund. This would assist in building up the Palestinian economy, and make it into an equal trading partner with Israel.

Comments are closed.

Current Top Story
Jewish and Muslim bless a crowd of hundreds at a special prayer rally at Gush Etzion junction.
Jews, Arabs Unite to Underline Co-existence in Gush Etzion
Latest Indepth Stories
lahore

I sought a Muslim group that claims to preach a peaceful and accepting posture of Islam, Ahmadiyya

Eishet Chayil

While Orthodox men are encouraged to achieve and celebrated for it, Orthodox women too often are not

Jonathan Pollard.

Jonathan remember, as long as you’re denied your right to come home to Israel you’re still in prison

Inside of the home burned in the Prce Tag attack in the village of Duma.

Reports of a dead baby, a devastated family, and indications of a gloating attacker.

“Yesha” and Binyamin Regional Council leaders said the attack “is not the path of Jews in Judea and Samaria.”

The occasion? The rarely performed mitzvah of pidyon peter chamor: Redemption of a firstborn donkey.

American leftists have a pathological self-inflicted blindness to the dangers of political Islam

Hillary should THANK Trump; By dominating the news he’s overshadowed the implosion of her campaign

Hard to remember when Jewish youth were so hostile to their heritage as they are on campuses today.

Names of the enablers of Iran’s Nuclear weapons will be added next to Hitler’s on the list of infamy

By most accounts, the one person with the political muscle to swing enough Democratic votes to override a veto is Sen. Schumer.

The next day, in a speech in New York to the Council on Foreign Relations, Mr. Kerry substantially upped the ante.

In Israel, the judiciary has established itself as superior to ALL other branches of the government.

The Fifteenth Day of the month of Av became a day of national rejoicing. The moment that had seemed hopeless became the moment of Redemption.

More Articles from Yoram Ettinger
Map of the Middle East

“The enemy of my enemy is my potential ally” view has consistently led to Middle East mismanagement

Ticker tape at Tel Aviv Stock Exchange.

Based on Israel’s record, current events are mere bumps on the road to great growth&acceptability

Intra-Arab/Muslim terrorism has been a Middle East fixture since the 7th century emergence of Islam

ANY agreement with Iran should have been predicated upon the drastic transformation of the regime

Unlike USSR, Ayatollahs driven by martyrdom & apocalypse NOT MAD (Mutual Assured Destruction) theory

Abbas’ regime is defined by corruption, kleptomania, nepotism, hate-education, incitement, terrorism

Could the enemy (Saudi Arabia) of Israel’s enemy (Iran) become Israel’s friend? It’s highly doubtful

Printed from: http://www.jewishpress.com/indepth/opinions/israels-credit-rating-reaffirmed/2012/10/05/

Scan this QR code to visit this page online: